Johnson & Johnson (JNJ) vs Merck & Co., Inc. (MRK)
A side-by-side comparison of Johnson & Johnson and Merck & Co., Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of September 10, 2026. Differences are shown without an overall score or investment verdict.
JNJ
Johnson & Johnson
$265.58HealthcareDelayed quote: Sep 11, 2026, 4:00 PM EDT
MRK
Merck & Co., Inc.
$143.94HealthcareDelayed quote: Sep 11, 2026, 4:00 PM EDT
Total return — JNJ vs MRK
growth of $100 · dividends reinvested · last 10yJNJ +192.2% (+11.3%/yr)MRK +228.7% (+12.6%/yr)MRK compounded faster over this window
JNJ MRK
JNJ vs MRK: by the numbers
- •JNJ is the larger company ($640.02B vs $355.49B market cap).
- •JNJ trades at the lower trailing earnings multiple (30.77 vs 115.15 P/E), one valuation lens rather than an overall verdict.
- •JNJ converts more revenue to profit (21.48% vs 4.78% net margin).
- •MRK grew revenue faster over the past five years (7.87% vs 2.93% CAGR).
- •MRK pays the higher dividend yield (2.32% vs 1.98%).
Metrics side by side
Valuation
| Metric | JNJ | MRK |
|---|---|---|
| P/E ratio | 30.77 | 115.15 |
| Forward P/E | 22.93 | 52.41 |
| P/S ratio | 6.54 | 5.35 |
| P/B ratio | 7.53 | 8.48 |
| EV / EBITDA | 19.66 | 22.76 |
| FCF yield | 2.92% | 4.52% |
Profitability
| Metric | JNJ | MRK |
|---|---|---|
| Gross margin | 70.45% | 75.38% |
| Operating margin | 26.81% | 36.17% |
| Net margin | 21.48% | 4.78% |
| ROE | 24.76% | 7.57% |
| ROIC | 13.89% | 5.80% |
Dividends
| Metric | JNJ | MRK |
|---|---|---|
| Dividend yield | 1.98% | 2.32% |
| Payout ratio | 61.18% | 268.80% |
Growth (annualized)
| Metric | JNJ | MRK |
|---|---|---|
| Revenue CAGR (5Y) | 2.93% | 7.87% |
| EPS CAGR (5Y) | 14.61% | 21.21% |
| FCF CAGR (5Y) | -2.05% | 23.61% |
| Total return CAGR (5Y) | 12.90% | 18.15% |
Frequently asked
- Which has the lower trailing P/E, JNJ or MRK?
- JNJ has the lower trailing P/E: JNJ trades at 30.77 and MRK at 115.15. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, JNJ or MRK?
- Over the past five years, MRK grew revenue faster — JNJ at a 2.93% CAGR versus MRK at 7.87%.
- Does JNJ or MRK pay a bigger dividend?
- JNJ yields 1.98% and MRK yields 2.32% based on trailing dividends and the latest price.
- Is JNJ or MRK more profitable?
- JNJ runs the higher net margin — JNJ at 21.48% versus MRK at 4.78%.
- How have JNJ and MRK total returns compared?
- Over the past 10 years, JNJ delivered 11.45% and MRK delivered 12.68% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Johnson & Johnson P/E ratioMerck P/E ratioJohnson & Johnson dividend yieldMerck dividend yieldJohnson & Johnson ROEMerck ROEJohnson & Johnson operating marginMerck operating marginJohnson & Johnson revenue growthMerck revenue growthJohnson & Johnson free cash flowMerck free cash flow
Johnson & Johnson & Merck appear in these rankings
Highest Dividend Yield Stocks25+ Year Dividend GrowersHighest Operating Margin StocksHighest FCF Yield Stocks
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Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified September 10, 2026.